July 17, 2008 – 7:10 pm

As a harbinger of what has come to be HBOS was stung be the disdain of investors for it’s rights price issue go unwanted. The emergency cash raising efforts crashed and burned able to push off just over 8% of the shares arleady in the red.

Morgan Stanley and Dresdner Kleinwort Ltd. lead underwriters left with about 2.5 billion pounds ($5 billion) of HBOS Plc stock after the biggest shareholder rejection of a European rights offer this decade.

Yea the biggest flopper of this decade, who is surprised. What’s surprising is that they were able to move 8% of the banks stock in a credit crisis.

This signals that the grave train has run crashing into the credit crunch and one more scam is taken out of play. The bank got it’s money this time, but the stakers got stuck and they won’t be so ready to get buried under the stock they can’t move next time around.

“The message is loud and clear. People still don’t really want to buy banking stocks,” said Julian Chillingworth, chief investment officer at London-based Rathbone Brothers, in an interview today. He helps manage $21 billion including HBOS stock.

The message really is no one wants this toxic crap and were not going to take it anymore.

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